Seven years ago my older brother convinced me to use my good credit to get a home loan for him.  I was only 25 at the time and didn't know any better, but he told me that he would put the loan under his name after a year or two.  Well, needless to say, we haven't been successful with doing that.  The home loan is now about $70,000 more than what the market value is for the condo and we don't know how long it will be before it returns. 

But now I'm married and have a baby and would like to have things in order, so me and my family can receive any and all benefits of not owning the condo.  For example, if the condo wasn't under our name, we would qualify for affordable housing, and in the future, a first-time buyer program (after 3 years of not owning a property).

My brother does not have the ability to pay the negative balance so he can put the loan under his name.  I called the title company or lender a couple years ago and they can't transfer the title to my brother.  After talking with a few more people and their response is "you can take you name off the title... oh but only if your brother's name is on the title."  So, can I add him to the title?  Or would the lender not allow me to do that?  Can I refinance the mortgage and have my brother co-sign, then add him to the title at that time?  Oh wait, that means I would have to come up with the negative $70,000 in order to refi, huh?  Gosh this is so frustrating.  Is  there any way that I can add him to the title, then eventually take my name off?  Please help.  I don't want to short-sell the condo and I don't want to mess up my credit since I have a wife and baby that depend on me now.

Thank you so much for all of your help.

Mark, you're in a tough spot. The only way to release your obligation on the debt is to have your brother refinance in his name only or sell the property (neither seems like a viable option). Adding him and removing you from the title is easy but it is also a breach of the deed of trust. Lenders don't really police that type of activity but by doing it the lender has the legal right to call the note.

Unfortunately, many people like yourself are in a tough situation with no real solution. There may be a chance that the lender can work with you on a solution.

Mark, is the existing loan a FHA?

Hi.  I think it is, but not 100% sure.  I'll have to do some research to find that out.  Will it just say FHA on the loan documents?

Thanks for your help,
Mark

Thank you for sharing your knowledge.  It's very much appreciated.  I guess it doesn't really help to get myself out of the title if I can't get my name out of the loan too.  Gosh, what a dillema.  Unfortunately, the lender doesn't want to do anything about it because I'm current and always have been current on the payments.  I just don't want to mess up my credit either.  I'd like to use it for me and my family when we are finally ready to do and also because I'm making a career change, which the employer cares very much about a person's character based off of their credit reports.

I think it is true,not i am sure is it acurate